VBK vs VGSH
VBK vs VGSH
Vanguard Small Cap Growth ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. VBK delivered stronger 1-year returns. VBK offers more diversification with 542 holdings.
Side-by-Side Comparison
| Metric | VBK | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $24.8B | $29.4B | |
| Dividend Yield | 0.57% | 3.87% | |
| Holdings | 561 | 94 | |
| YTD Return | +17.71% | +0.69% | |
| 1Y Return | +29.45% | +2.54% | |
| 3Y Return (annualized) | +16.91% | +4.15% | |
| 5Y Return (annualized) | +5.29% | +1.88% | |
| Volatility (annualized) | 19.6% | 1.4% | |
| Max Drawdown | -59.4% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2004 | Nov 19, 2009 |
VBK vs VGSH Performance
Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VBK returned +29.45% while VGSH returned +2.54%. Year to date, VBK is up 17.71% versus a gain of 0.69% for VGSH.
Over three years, VBK compounded at +16.91% per year against +4.15% for VGSH; over five years the annualized figures are +5.29% and +1.88% respectively. Across the full 17-year window we track, VBK has the edge at +9.41% annualized vs +0.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 1.4% for VGSH. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.4% for VBK and -6.7% for VGSH. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBK charges 0.05% per year while VGSH charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VBK currently yields 0.57% against 3.87% for VGSH.
Holdings Overlap
VBK and VGSH share 0 holdings out of 618 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBK or VGSH?
VBK has an expense ratio of 0.05% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBK or VGSH?
Over the past year VBK returned +29.45% vs +2.54% for VGSH, so VBK leads on 1-year performance. Over the longest common window we track (17 years), VBK annualized +9.41% vs +0.71% for VGSH. Past performance does not guarantee future results.
Which is riskier, VBK or VGSH?
VBK has been the more volatile fund at 19.6% annualized versus 1.4% for VGSH. Worst drawdown: VBK -59.4% vs VGSH -6.7%.
Should I hold both VBK and VGSH?
VBK and VGSH have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and VGSH?
VBK and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 618 unique securities.
Which pays a higher dividend, VBK or VGSH?
VBK yields 0.57% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.
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